Under this bulk entitlement, Gippsland Water do not have an entitlement to a share of storage and while there is an annual volumetric limit specified for this bulk entitlement, carryover of unused water is not permitted. Therefore, the volume reported as the opening and closing balance of the inter–region commitment on surface water was zero, as shown in the following table.

Calculation of Tarago River – Gippsland Water bulk entitlement for the 2011–12 year

1 As no formal annual allocations are made for this bulk entitlement, the volume allocated in the 2011–12 year was equivalent to the diversion volume.

The Tarago River – Gippsland Water bulk entitlement allows Gippsland water to take up to 4,825 ML per year to supply the towns of Drouin and Neerim South (Bunyip catchment, within the Melbourne region) and Warragul (Latrobe catchment, adjacent to the Melbourne region), as shown in the following table.